Agenda item

As detailed in the recommendations.

Councillor Johnson introduced the report which detailed the proposed Capital Programme for the period 2023/24-2025/26 for recommendation to Council.

The Council’s Capital Programme covered investment in assets for the long term to enable the delivery of high quality and value for money public services.  Assets included buildings (such as schools, care homes and day centres), infrastructure (such as highways and ICT networks) and assets not owned by the Council (such as works to improve and adapt private sector homes).  The proposed capital investments outlined in the report were closely aligned to portfolio service business plans and the Council Plan.

The Council had limited capital resources from Welsh Government (WG) to support Council priorities, needs and liabilities.  However, it had the powers to fund capital schemes by borrowing.  That was temporary and ultimately, the cost of repayment of any borrowing was charged to the Council’s revenue budget.  Schemes funded by borrowing were carefully considered due to the long-term impacts on the Council’s revenue budget.

The report divided the Council Fund Capital Programme into three sections:

1.    Statutory / Regulatory – allocations to cover regulatory and statutory works

2.    Retained Assets – allocations to fund infrastructure works necessary to ensure service and business continuity

3.    Investment – allocations to fund works necessary to remodel services to deliver efficiencies outlined in portfolio business plans and invest in services as outlined in the Council Plan

Historically, much of the Council’s programme had been funded from capital receipts and grants. The Council’s ability to generate significant capital receipts was

challenging as the assets the Council had available for disposal diminished. Wherever possible every opportunity to identify assets for sale and other sources of funding such as specific grants and revenue contributions would be explored. However, the Council would need to use prudential borrowing to finance more of the programme going forward. In particular, the Sustainable Communities for Learning Band B programme, and other schemes included within the investment programme would need to be funded through prudential borrowing.

The Capital Strategy had been updated and was presented separately on the agenda.

The Chief Executive added that the report had been considered at the Corporate Resources Overview and Scrutiny Committee the previous week where concerns had been raised on capital funding and possible impacts on the revenue budget.  A level of assurance was given on the capital programme and a robust discussion took place.

RESOLVED:

(a)       That the allocations and schemes in Table 3 of report for the Statutory / Regulatory and Retained Assets sections of the Council Fund Capital Programme 2023/24 – 2025/26 be approved;

(b)       That the schemes included in Table 4 of the report for the Investment section of the Council Fund Capital Programme 2023/24 – 2025/26 be approved;

(c)        That the shortfall in funding of schemes in 2024/25 in Table 5 of the report at this point in the approval process allowing flexibility be noted.  Options including a combination of future capital receipts, alternative grants (if available), prudential borrowing or the re-phasing of schemes will be considered during 2023/24 and included in future Capital Programme reports; and

(d)       That the schemes included in Table 6 of the report for the specifically funded section of the Council Fund Capital Programme which will be funded in part through borrowing be approved.